Banks stronger now than in GFC: RBA
The financial sector is stronger than during the global financial crisis, making it less likely markets will again suffer the severe shock that sent the world into an economic meltdown.
Senior Reserve Bank of Australia official Jonathan Kearns says reforms introduced after the 2007 crisis left the financial sector more resilient, which meant it didn’t suffer a repeat collapse when the COVID-19 pandemic hit.
“Had the financial system been as fragile as it was in 2007, the consequences of the pandemic would have been much more severe,” he said.
“Instead, in 2020 our financial system was well positioned to absorb, rather than amplify, the pandemic shock.”